I like to take lots and lots of numbers and turn them into proprietary concepts and multi-platform content. Three of my longstanding publishing creations: the valuations of sports teams, ranking actors and movie studios on bang for the buck (ROI) and the Forbes Fab 40 (the most valuable sports brands). My most recent idea was Names You Need To Know, which broadened my concept of list creation to include direct input from our audience. I also like to take apart corporate balance sheets to measure earnings quality and have a passion for economics (my MBA thesis at Long Island University was an empirical study on the cause of inflation in which regression analysis showed a significant correlation between the general level of prices and the money supply). Besides being an Executive Editor at Forbes I also have a gig as co-host and Managing Editor of the 3-time New York Emmy award winning Forbes SportsMoney on the YES Network and Fox Sports 1 with my buddies at YES, co-host Bob Lorenz and producer David Alfreds, both of whom have taught me a tremendous amount. I also regularly appear on Fox and CNBC to chat about the business, political and sports issues of the day. My brother in arms is Kurt Badenhausen, whom I have worked with for many years and knows more about sports numbers than anyone.

In February, 2011 the rocker was going to invest $150 million for a 15% stake in the Atlanta Falcons. A month later, the NFL lockout hit and Bon Jovi changed his mind because he felt the work stoppage would reduce the $1 billion valuation his investment placed on the Falcons, according to a person familiar with the situation.

But in July of that year, the players and owners agreed to a new collective bargaining agreement. The 10-year deal made team values go up because it reduced the percentage of league revenues that went towards player salaries, and the guarantee of long-term labor peace made it easier for the owners to get new broadcasting deals with ESPNESPN, NBC, FoxFox and CBSCBS beginning in 2014 that are over 60% richer than the league’s current rights fees.

As for the Falcons specifically, controlling owner Arthur Blank got closer to getting the funds for a new stadium Tuesday when NFL owners voted to provide his team with $200 million in league funding. The city of Atlanta, state of Georgia, Georgia World Congress Center & Atlanta Falcons have agreed to build a retractable-roof stadium, with a potential cost of around $1 billion, on the GWCCA campus in time for the 2017 NFL season.

We most recently valued the Falcons at $837 million, 28th out of the league’s 32 teams. The Falcons are also in the bottom-fifth of the league in revenue ($239 million) thanks to playing in the antiquated Georgia Dome. The new, $1 billion stadium will boost the value of the team well above $837 million due to more revenue from premium seating and sponsorships. Without a final lease agreement it is impossible to determine what the precise increase in revenue and value will be for the Falcons.

But as a guide, consider that a year ago, James Haslam agreed to pay Randy Lerner $1.1 billion for the Cleveland Browns–paying 70% of the purchase price immediately and 30% in three years. The present value of the future payment valued the team at $987 million. Atlanta is much bigger market than Cleveland and will have a state-0f-the art stadium, so it is hard to see how the Falcons could be worth less than $1.1 billion once the stadium is a done deal.

But Bon Jovi will likely only profit from the new stadium by performing during halftime of a Super Bowl.

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My last paycheck was $7500 working 12 hours a week online. My sisters friend has been averaging 11k for months now and she works about 20 hours a week. I can’t believe how easy it was once I tried it out. The potential with this is endless. This is what I do, Rich4.Com_

so how did he blow it? based on your own current valuation he clearly made the correct move, and any increase is speculative at this point with not very much apparent upside that would have made risking that 150MM investment a prudent move

how is that the case? your own article says the current valuation is $837mm which is lower than the $1B valuation that his proposed $150MM investment was predicated upon; and your article says that even with the new deal, without the lease settled you can’t even estimate its value giving effect to the new deal; and he made his investment decision in 2011, which means as of today, he would have a negative return 2+ years into the deal; and even if it were worth at least 1.1 billion, as you suggest, that would be a pretty lousy return (less than 10% annually) given the risks that were there in 2011; so I stand by my original question

Even with a bigger stadium the crowd will not fill it..The city has harassed and stomped on the throat of outside vendors that have been around when the team was nothing. And now that they think there a real team at the bottom of revenue charts they sold off the rights to outside vendors prevented them from making a living..And waited for vendors to buy inventory then tell them at last minute you can’s sell for NCAA tournament-Braves-Falcon’s-Hawk’s because you will sell cheaper and sell more outside than them. They want big business to buy inside over priced spaces for only the rich can sell. Falcon’s are not a favorite team of Atlanta the STADIUM is filled more when the Black College tournament’s and Band competitions come. Alot of greed and making the city put a tax on hotel visitors to pay when they have monster revenue’s coming in form TV-CABLE RIGHTS…a suit was filled to see where the vendor’s will land…Atlanta sold the rights to a company you have to buy a license from them -have a special set up sold to you by them and still buy a city license..What a dumazz move on the Cities part.. All with the intentions to drive the VENDOR’S out who where here selling with all those loosing season’s..No real difference from now they haven’t won a Super Bowl but act like they have…

For what it’s worth, Falcons are bucking an NFL-wide trend and have no problems with attendance – been to several games myself. And it was just announced that the Falcons have set a season ticket sales record. I think we’ll fill any stadium (current or proposed) just fine.

He passed on 15% of a $1B organization in 2011, and two years later the Falcons have a value that you state is “hard to see how the Falcons could be worth less than $1.1 billion”. 10% in 2 years is a mistake? He could have put that $150M in some lame large cap fund and gained 30%+ in the past two years. I think Bon Jovi scored a Touchdown with that pass.

pass2srf: fair point about alternative uses of money. That said, many team owners use nfl debt to invest in other areas outside of team. So possible for Jon to have done both–owned team and invested in market.

good article mike…my two cents?… – the headline states bon jovi blew it by passing on this investment= perhaps the only thing wrong was the headline, maybe your editor is the one at fault:) maybe he/she should have read the article more thoroughly.:) people with money are sometimes in a quandry, they have to do something with their money…:) also your comment that many owners use thier nfl debt for other investments is true… to put borrowed money in the market, is gutsy and risky, ie your broker will love you but long term, but usually an exercise in frustration for the average investor…cuz u have to factor in the cost of the money, which has to be less than your return, of course…. investing in sports teams might be ‘sexy’….but i think bon jovi is doing fine without this team in his portfolio….i dont see it as a blown oppurtunity. Did he miss a great windfall? not hardly, at least not so far, by your own math…..?n i’m pretty sure he’s sleeping just fine at night…:)

Hopefully he didnt put it in apple or facebook stock:)( which have both tanked most recently:))